Bryan Pellegrino, CEO of LayerZero Labs, believes that stablecoins are the most effective means for the United States to maintain its financial dominance globally, as reported by Cointelegraph.
In his view, the widespread use of dollar-pegged tokens could significantly bolster the demand for the US dollar, especially in countries battling high inflation like Argentina and Venezuela.
Pellegrino, whose company developed the LayerZero interoperability protocol recently adopted by Wyoming for its state stablecoin, argues that stablecoins act as a strategic advantage. He describes them as a modern tool that could help the dollar outpace other currencies, strengthening its global reserve status. As stablecoins gain traction, both state and federal support for their adoption is expected to grow, given their potential to secure the dollar’s influence in international markets.
One key indicator of this trend is Tether’s role as a major buyer of US Treasury bills, recently ranking as the seventh-largest holder, surpassing countries like Canada and Germany. This surge in demand reflects how stablecoin issuers are becoming significant players in the market for US debt instruments.
During the White House Crypto Summit, US Treasury Secretary Scott Bessent emphasized that the Trump administration sees stablecoins as crucial to maintaining dollar supremacy, marking it as a top priority for 2025. The administration’s strategy is to leverage these digital assets to extend the dollar’s reach.
Data from Chainalysis in 2023 showed that over half of the crypto value transferred to Latin American nations like Argentina, Brazil, and Mexico involved stablecoins. Their appeal lies in low transaction fees, fast processing, and stability, making them particularly useful for remittances and as a store of value in economies facing inflation and tight capital controls.
Pellegrino’s perspective highlights the strategic use of stablecoins not just as a financial tool but as a way to reinforce the dollar’s global presence, especially in emerging markets.71202
Author
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
